Notes to Accounts of Ind Bank Housing Ltd.

Mar 31, 2025

l) Contingent Liabilities:

All liabilities have been provided for in the accounts. There is no liability contingent in nature.

20. Significant Use of Estimates

The presentation of financial statements in accordance with the applicable Accounting Standards and Policies requires the
management to make estimates and assumption on future events that may affect the balances of assets and liabilities and the
reported amounts of income and expenditures during the year under audit. However, the actual results could differ from those
estimated which will be recognized prospectively.

Gratuity Assumption

The measurement of company''s defined benefit obligation to its employees requires the use of certain assumption, including, among
others, estimate of discount rates and expected return on plan assets. Changes in these assumptions may affect the future funding
requirements of the plans and actuarial gain/loss recognized in the statement of comprehensive income.

b) Maintenance of Net Owned Funds and Principal Business Criteria:

The management had submitted a detailed action plan for revival of the Company to the RBI on 20.01.2023. Yet RBI vide
letter no CO.DoR.RG.No. S3544/23-27-014/2023-24 dated 22.09.2023 cancelled the NHB licence w.e.f 21.09.2023
and the Management surrendered the original Certificate of Registration (CoR) to RBI, Chennai Regional Office on
27.09.2023. Further the Board of Directors of the company in its board meeting held on 04.11.2023 had given in¬
principle approval for winding up of the company under section 271 of the Companies Act 2013 subject to the
Shareholders and other Regulatory approvals. Moreover As stated in the RBI''s order dated 22.09.2023, “Cancellation
shall not prevent the company from recovering loans from the borrowers and the repayment of all the outstanding claims
against the company, if any, under applicable laws”. The company is making its sincere efforts to recover the dues from
loan outstanding (NPA Accounts). Further to that, your company is having sufficient cash to the tune of Rs.2.95Cr for
operation and to take care of the foreseeable future for next year. Considering the ongoing recovery process in the
company, the audited financial statements have been prepared on a going concern concept.

c) The Company continues to receive support from its promoter, Indian Bank. The company has suspended making fresh
lending since the year 2000 and is focusing on recovery of housing loans as per the terms of the agreement entered with
the borrowers and other loans which are under litigation. The Company was notified as a ‘financial institution'' under the
SARFAESI Act in 2006 which is helping the company to speed up the recovery process.

d) The only business activity of the company is housing finance and hence no segment reporting has been done.

e) The unabsorbed depreciation and carry forward losses eligible for set-off against future taxable income have not been
considered for deferred tax asset due to lack of probability that there will be future taxable profit. Hence the deferred tax
assets are not created as a prudent measure.

g) The Term Loans from Indian Bank include interest accumulated thereon and outstanding as of 31.03.2017, Interest is
not charged in the Term loan since 2017 and debt freezed at Rs.129.00 Crore. Accordingly, no interest on the loan has
been accounted for the FY 2024-25 and the entire due of Rs. 129 crores has been maintained in the books of accounts as
at the balance sheet date.

h) Amounts received under SARFAESI actions to the tune of Rs.38.86 lakhs are kept in bank deposits of which Rs.25.00
lakhs is disputed SARFAESI action. For this Rs. 25.00 lakh the matters are sub judice and the relevant cases are pending
with the Hon''ble Madras High Court, these have not been adjusted against the loan outstanding while arriving at the
provisioning. The surplus recovered over and above the outstanding due, consequent to sale of property under
SARFASI, is retained under “the Amounts pending appropriation with receivable accounts”.

i) Contingent Liabilities -NIL (PY: NIL)

j) Defined Contribution Plans:

Contribution to Provident Fund Rs.NIL (PY: Rs. 17,339/-) is made to the Regional Provident Fund Commissioner and is
recognized as an expense. The liability is confined to the contribution made and no further obligation to pay any additional sums.

k) The Company has repaid all the deposit accepted from public except to the extent of Rs.6,33,090/-, which represent the
deposits matured but withheld as the Central Bureau of Investigation Anti-Corruption Branch, Madurai. has given
directions not to release the amount still the disposal of the pending cases. The Company has parked this amount in fixed
deposits with Indian bank, Nandanam Branch.

l) The details of financial assets - loan receivables and pending litigations

• Out of Rs.2.75crores (4 cases) dues from ICD, suit has been filed in 1 case.

• Out of Rs.6.71 crores (1 cases) dues from Project loans, suit has been filed for Rs.6.71 crores (1cases)

• Out of Rs.0.42crores (30 cases) dues from individual Loans suit has been filed for Rs.0.39 crores(24cases)

m) Managing Director of the company is on deputation from Indian Bank and is drawing remuneration from Indbank
Merchant Banking Services Ltd as President cum WTD of that company. Hence no remuneration has been paid by the
company.

n) The Income Tax Department has sent a demand notice for Rs.4.32 Crore for the assessment year 1999-2000 including
interest. The demand is raised by considering the income on non-performing assets on accrual basis which, as per the
NHB directives, could not be recognized as income. The Company has contested the demand before the Hon''ble
Madras High Court and the judgment is issued in favour of the company on 29.11.2021. Income Tax department has not
gone for any appeal. IBHL through their Tax consultant submitted a letter dated 17.04.2023 to Income Tax department for
giving effect order. Awaiting response from Income Tax Department. The Income Tax Department has passed revised
assessment order for the assessment year 2006-07, stating excess of Rs. 26.34 lakh claimed provision was withdrawn
which was found to be incorrect and raised a demand with interest. The income tax department started adjusting this
demand against the TDS refund. IBHL submitted reply to Income tax department on 05.08.2024 and 20.02.2025 for
passing fresh assessment order and restoring original returned loss filed by IBHL in the A Y year 2006-07 since the ITAT
order received by the department got barred by limitation on 31.03.2024. Awaiting response from Income Tax
Department.

o) Additional Regulatory Information:

(i) The Company does not own any Immovable properties or investment properties.

(ii) The Company has not revalued its Property, Plant and Equipment or intangible assets during the year.

(iii) The company has not granted any loans or advances in the nature of loans to promoters, Directors, KMPs and related
parties (as defined under Companies Act, 2013), either severally or jointly with any other person, either repayable on
demand or without specifying any terms or period of repayment.

(iv) The Company does not have any Capital-Work-in Progress (CWIP).

(v) The Company does not have any Intangible Assets under Development.

(vi) There have been no proceedings initiated or are pending against the Company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(vii) The Company does not have any borrowings from banks or financial institutions on the basis of security of current
assets.

(viii) The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

(ix) The company has not had any transactions with companies struck off under section 248 of the Companies Act, 2013
or section 560 of Companies Act, 1956.

(x) There are no charges yet to be registered with the Registrar of Companies beyond the statutory period. The following
are the details of the charges in respect of which satisfaction is yet to be registered with the RoC, beyond the statutory

nprinrl¹ .

(xiii) There has been no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of
the Companies Act, 2013.

(xiv) Utilization of Borrowed funds and share premium:

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities
(“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend
or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received
any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or
indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”)
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(xv) There have been no transactions not recorded in the books of account which have been surrendered or disclosed as
income during the year. There has also not been any previously unrecorded income or related assets. Also, no tax
assessments under the Income Tax Act, 1961 (43 of 1961) have been received during the year.

q) The figures in this Balance Sheet and Statement of Profit and Loss have been rounded off to the nearest hundreds.

For and on behalf of the Board

As per our report of even date
For A.R.Krishnan & Associates

SHIV BAJRANG SINGH SUNIL JAIN V. HARIBABU Chartered Accountants

(Director - DIN No: 10597820) (Director- DIN No: 09665264) (Director- DIN No: 09523733) FRN: 009805S

^LA ¦ ^HAr^RENE . , . Anandaramakrishnan

Chief Financial Officer „ _x

Partner

Place: Chennai Mem. No. 209122

^{Date: 23}.⁰⁴.²⁰²⁵ UDIN: 25209122BMKVLA7554

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Mar 31, 2024

b) Maintenance of Net Owned Funds and Principal Business Criteria:

As per the Reserve Bank of India''s Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021, the Company is expected to maintain minimum Net Owned Funds of Rs. 20 crores as on 31^st March 2023 to carry on its business of housing finance and also to satisfy the Principal Business Criteria. There have been various communications between the management and the Reserve Bank of India (RBI), wherein the RBI has asked the management to satisfy the Net Owned Funds requirements and also submit a road map for fulfilling the Principal Business Criteria. In this connection, the management has submitted a detailed action plan for revival of the Company to the RBI, and has also responded to various queries raised by the RBI relating to the plan. The management had submitted a detailed action plan for revival of the Company to the RBI. Yet RBI vide letter no CO.DoR.RG.No. S3544/23-27-014/2023-24 dated 22.09.2023 cancelled the NHB licence w.e.f 21.09.2023 and the Management surrendered the original Certificate of Registration (CoR) to RBI, Chennai Regional Office on 27.09.2023. Further the Board of Directors of the company had given in-principle approval for winding up of the company under section 271 of the Companies Act 2013 subject to the Shareholders and other Regulatory approvals. Accordingly, the financial statements have been prepared on a going concern concept.

c) The Company continues to receive support from its promoter, Indian Bank. The company has suspended making fresh lending since the year 2000 and is focusing on recovery of housing loans as per the terms of the agreement entered with the borrowers and other loans which are under litigation. The Company was notified as a ''financial institution'' under the SARFAESI Act in 2006 which is helping the company to speed up the recovery process.

d) The only business activity of the company is housing finance and hence no segment reporting has been done.

e) The unabsorbed depreciation and carry forward losses eligible for set-off against future taxable income have not been considered for deferred tax asset due to lack of probability that there will be future taxable profit. Hence the deferred tax assets are not created as a prudent measure.

g) The Term Loans from Indian Bank include interest accumulated thereon and outstanding as of 31.03.2017, the entire due of Rs. 129 crores has been maintained in the books of accounts as at the balance sheet date.

h) Amounts received under disputed SARFAESI actions to the tune of Rs.25.00 lakhs are kept in bank deposits. As the matters are sub judice and the relevant cases are pending with the Hon''ble Madras High Court, these have not been adjusted against the loan outstanding while arriving at the provisioning. The surplus recovered over and above the outstanding dues, consequent to sale of property under SARFASI, is retained under “the Amounts pending appropriation with receivable accounts”.

I) Contingent Liabilities -(PY: NIL)

j) Defined Contribution Plans:

Contribution to Provident Fund Rs. 17,339/- (PY: Rs. 20,638/-) is made to the Regional Provident Fund Commissioner and is recognized as an expense. The liability is confined to the contribution made and no further obligation to pay any additional sums.

k) The Company has repaid all the deposit accepted from public except to the extent of Rs.6,33,090/-, which represent the deposits matured but withheld as the Central Bureau of Investigation Anti-Corruption Branch, Shastri Bhavan, Chennai has given directions to not release the amount still the disposal of the pending cases. The Company has parked this amount in fixed deposits with bank.

l) The details of financial assets - loan receivables and pending litigations

• Out of Rs.2.76crores (3cases) dues from ICD, suit has been filed for Rs.2.69crores (2cases)

• Out of Rs.6.71 crores (1 case) dues from Project loans, suit has been filed for Rs.6.71 crores (1case)

• Out of Rs.0.42crores(30cases) dues from individual Loans suit has been filed for Rs.0.39 crores(24 cases)

m) Managing Director of the company is on deputation from Indian Bank and is drawing remuneration from Indbank Merchant Banking Services Ltd as President cum WTD of that company. Hence no remuneration has been paid by the company.

n) Disclosures as per directions “Housing Finance Companies - Corporate Governance as per the Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021” are attached till Sep 2023 quarter as the License of HFC has been cancelled in Sep 2023.

o) Interest due on interest tax refunds for the 5 assessment years 1993-94, 1994-95, 1997-98,1998-99 and 2000-01 have been recognized as income in the earlier years amounting to Rs.237.88 lakhs based on the internal workings / calculations done by the management in consultation with tax consultants. under presumption of the correctness of such calculation as per the provisions of the relevant Act / Rules made there under even though further communications have not been received. However, the company has filed necessary application/appeals/representations before the Income Tax Department for the same. Further, an amount of Rs.2.79 lakhs has been shown as TDS refund receivable even though no credits have been granted due to the fact that the TDS certificates have either not been filed or not appropriate. However, the Company is in continuous effort for doing the necessary procedural compliance to get the refunds.

p) Additional Regulatory Information:

(I) The Company does not own any Immovable properties or investment properties.

(ii) The Company has not revalued its Property, Plant and Equipment or intangible assets during the year.

(iii) The company has not granted any loans or advances in the nature of loans to promoters, Directors, KMPs and related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, either repayable on demand or without specifying any terms or period of repayment.

(iv) The Company does not have any Capital-Work-in Progress (CWIP).

(v) The Company does not have any Intangible Assets under Development.

(vi) There have been no proceedings initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(vii) The Company does not have any borrowings from banks or financial institutions on the basis of security of current assets.

(viii) The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

(ix) The company has not had any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

(xiii) There has been no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

(xiv) Utilization of Borrowed funds and share premium:

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security, or the like on behalf of the Ultimate Beneficiaries.

(xv) There have been no transactions not recorded in the books of account which have been surrendered or disclosed as income during the year. There has also not been any previously unrecorded income or related assets.Also, no tax assessments under the Income Tax Act, 1961 (43 of 1961) have been received during the year.

(xvi) The Company is not covered under the provisions of Section 135 of the Companies Act, 2013.

(xvii) The Company has neither traded nor invested in Crypto currency or Virtual Currency during the financial year.

r) The figures in this Balance Sheet and Statement of Profit and Loss have been rounded off to the nearest hundreds.

a. For determining the amount of unsecured advances, the rights, licenses, authorisations, etc., charged to the HFCs as collateral in respect of projects (including infrastructure projects) financed by them, should not be reckoned as tangible security. Hence such advances shall be reckoned as unsecured.

b. HFCs should also disclose the total amount of advances for which intangible securities such as charge over the rights, licenses, authority, etc. has been taken as also the estimated value of such intangible collateral. The disclosure may be made under a separate head in NTA. This would differentiate such loans from other entirely unsecured loans.

As part of the directors'' report or as an addition thereto, a Management Discussion and Analysis report should form part of the Annual Report to the shareholders. This Management Discussion & Analysis should include discussion on the following matters within the limits set by the company''s competitive position:

a. Industry structure and developments.

b. Opportunities and Threats.

c. Segment-wise or product-wise performance.

d. Outlook.

e. Risks and concerns.

f. Internal control systems and their adequacy.

g. Discussion on financial performance with respect to

operations.___

h. Material developments in Human Resources /

Industrial Relations front, including number of people

employed.___

4.8. Net Profit or Loss for the period, prior period items and changes in accounting policies_

Since the format of the profit and loss account of HFCs does not specifically provide for disclosure of the impact of prior period items on the current year''s profit and loss, such disclosures, wherever warranted, may be made in the NTA.

4.9. Revenue Recognition

An enterprise should also disclose the circumstances in which revenue recognition has been postponed pending the resolution of significant uncertainties.

4.10. Consolidated Financial Statements (CFS)

HFCs may be guided by applicable Accounting Standards in this regard. A parent company, presenting the CFS, should consolidate the financial statements of all subsidiaries - domestic as well as foreign. The reasons for not consolidating a subsidiary should be disclosed in the CFS. The responsibility of determining whether a particular entity should be included or not for consolidation would be that of the Management of the parent entity. In case, its Statutory Auditors are of the opinion that an entity, which ought to have been consolidated, has been omitted, they should incorporate their comments in this regard in the "Auditors Report".

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Mar 31, 2018

Annexure 1: Reconciliation of Equity as on 31 March 2017

	Foot Note	Previous GAAP (as per published result)	Adjustments	Ind AS
ASSETS				(in Rs.)
Non-Current Assets
Property Plant and Equipment		44,569		44,569
Financial Assets
(a) Receivables under financing activity			84,461	84,461
(b) Investments	2	340,171	141,198	481,369
(c) Other financial assets
Long term loans and advances		47,405,445	17,208	47,422,653
Other non-current assets	3
		47,790,185	242,867	48,033,052
Current Assets
Inventories
Financial Assets
(a) Receivables under financing activity
(b) Trade receivables	4 & 5
(c) Investment
(e) Cash and Cash Equivalents		75,364,787		75,364,787
(f) Other financial assets
Current Tax Assets
Other current assets	3	103,740	(103,740)
		75,468,527	(103,740)	75,364,787
Total Assets		123,258,712	139,127	123,397,839
Equity Share Capital		100,000,000		100,000,000
Other Equity
Retained Earnings	3,4,5,6,7,8, 10, 11 & 12	(1,336,718,195)	141,198	(1,336,576,997)
FVTOCI Reserve	2,10 & 12
Total Equity		(1,236,718,195)	141,198	(1,236,576,997)
Financial Liabilities
(a) Borrowings	3	1,298,515,510		1,298,515,510
(b) Trade Payables		30,950,097		30,950,097
(c) Other financial liabilities			633,090	633,090
Long Term Provisions	16	253,584		253,584
Other Long Term Liabilities	17
		1,329,719,191	633,090	1,330,352,281
Financial Liabilities
(a) Borrowings
(b) Trade Payables		748,715		748,715
Short Term Provisions	16a	2,069	(2,069)
Other Current Liabilities		29,506,932	(633,090)	28,873,842
		30,257,716	(635,159)	29,622,557
Total Liabilities		1,359,976,907	(2,069)	1,359,974,838
TOTAL EQUITY AND LIABLITIES		123,258,712	139,129	123,397,840

Annexure 2: Reconciliation of Equity as on 1 April 2016 (Date of transition to Ind-AS)

(in Rs.)

	Foot Note	Previous GAAP (as per published result)	Adjustments	Ind AS
ASSETS
Non-Current Assets
Property Plant and Equipment		65,791		65,791
Financial Assets
(a) Receivables under financing activity			162,774	162,774
(b) Investments	2	279,349	101,565	380,914
(c) Other financial assets
Long term loans and advances		48,969,684	(48,969,684)
Deferred tax assets - MAT Credit
Other non-current assets			47,008,869	47,008,869
		49,314,824	(1,696,476)	47,618,348
Current Assets
Financial Assets
(a) Receivables under financing activity
(b) Trade receivables	4&5
(c) Investments
(e) Cash and Cash Equivalents		57,921,883	1,065,935	58,987,818
(f) Other financial assets			414	414
Current Tax Assets
Other current assets		1,172,560	(1,172,560)
		59,094,443	(106,211)	58,988,232
Total Assets		108,409,267	(1,802,687)	106,606,581
EQUITY AND LIABILITIES
Equity
Equity Share Capital		100,000,000		100,000,000
Other Equity
Retained Earnings	3, 4, 5, B, 7, 8, 10.11&12	(1,224,228,544)	101,565	(1,224,126,979)
FVTOCI Reserve	2,10 &12
Total Equity		(1,124,228,544)	101,565	(1,124,126,979)
Non-Current Liabilities
Financial Liabilities
(a) Borrowings	3	1,170,014,410		1,170,014,410
(b) Trade Payables		30,950,097		30,950,097
(c) Other financial liabilities			633,090	633,090
Long Term Provisions		223,236	2,826	226,062
		1,201,187,743	635,916	1,201,823,659
Current Liabilities
Financial Liabilities
(a) Borrowings
(b) Trade Payables		796,165		796,165
Short Term Provisions	8	5,118	(5,118)
Other Current Liabilities		30,648,781	(2,535,052)	28,113,729
		31,450,064	(2,540,170)	28,909,894
Total Liabilities		1,232,637,807	(1,904,254)	1,230,733,553
TOTAL EQUITY AND LIABLITIES		108,409,263	(1,802,689)	106,606,574

Annexure 3: Reconciliation of profit or loss for the year ended 31 March 2017

	Foot Note	Previous GAAP	Adjustments	Ind AS
Revenue from Operations
Interest on housing loan	5&9	6,648,122		6,648,122
Other Income	6	3,836,323	12,204,639	16,040,962
Total Income		10,484,445	12,204,639	22,689,084
Expenses
Employee Benefits Expense	10&11	1,099,286		1,099,286
Depreciation and Amortisation Expense		19,973		19,973
Provisions and loan losses		(12,162,567)	12,162,567
Finance Costs	3&7	131,601,100		131,601,100
Other Expenses	4&5	2,416,308		2,416,308
Total Expense		122,974,100	12,162,567	135,136,667
Profit Before Exceptional Items and Tax		(112,489,655)	42,072	(112,447,583)
Exceptional Items
Profit Before Tax		(112,489,655)	42,072	(112,447,583)
Income Tax
- Current Year
- Adjustment of tax relating to earlier years
- Deferred Tax (Net)	12
Profit for the year (I)		(112,489,655)	42,072	(112,447,583)
Other Comprehensive income:
Items not to be reclassified to profit or loss in subsequent periods:
Re-measurement gains and (losses) on defined benefit obligations (net)	10
Income tax effect
Total (a)
Items that may be reclassified to profit or loss in subsequent periods:	2
Debt Instruments through OCI	12
Income Tax Effect on the same
Total (b)
Other comprehensive income/doss) for the year, net of tax (A B) (ll)
Total comprehensive income for the year, net of tax (I II)		(112,489,655)	42,072	(112,447,583)

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Mar 31, 2015

Rs in lacs

Particulars As on As on 31.03.2015 31.03.2014

(A) Contingent Liabilities

Income tax department has raised a demand for the assessment year 1999-00 432.00 432.00

against company had filed appeal before High Court Madras

Income tax department has raised a demand for the assessment year 2005-06 - 19.02

against company had filed appeal before CIT 432.00 451.02

1. loans excepting those loans classified as doubtful pursuant to the prudential norms of NHB are considered good and recoverable. The housing loans are secured by equitable mortgage of property and/or other securities to the extent of Rs.86,508,898/- and loans amounting to Rs.634,924/- are unsecured as on 31.03.2015. Classification of housing loans and provisions made for Non-Performing assets are given below.

2. The company continues to receive financial support from its promoter, Indian Bank. Though the company has suspended making fresh lending since the year 2000 it is complying with all the provisions and regulations stipulated by National Housing Bank. Presently the company is focusing on recovery of housing loan as per the terms of the agreement entered with the borrowers and other loans which are under litigation. The company was notified as a 'financial institution' under the SARFAESI Act on 2006 which is helping the company to speed up the recovery process.

3. The company has ready access to financial resources from the parent Bank, and its ability to continue in the future simply requires only policy decision without any further infrastructure at additional cost.

4. Accordingly, these financial statements have been prepared on a going concern assumptions.

5 The only business activity of the company is housing finance and hence no segment reporting has been done.

6 The unabsorbed depreciation and carry forward losses eligible for set-off against future taxable income have not been considered as deferred tax asset on the ground of virtual uncertainty.

7 There are no related party relationship/transactions requiring disclosure as per the relevant accounting standard

8 In respect of term loan taken from Indian Bank the company has given an undertaking to the Bank not to sell, dispose off, charge or otherwise alienate any of its fixed and liquid assets without the prior consent of the Bank so long as the Company's liabilities to the Bank has not been fully repaid.

9 The Income Tax Department has sent a demand notice for Rs.4.32 crores for the assessment year 1999-00 including interest. The demand is raised by considering the income on non-performing assets on accrual basis which, as per the NHB directives, could not be recognised as income. The Company has contested the demand and the matter is pending before the Madras High Court.

The Demand adjusted by the Income Tax Department against the refund of Interest tax and the interest thereon along with the Income tax refund claims for subsequent years amounting to Rs.4.83 cr is reflected under Long Term Loans & Advances and are subject to reconciliation with the Income Tax Department. 10 The company has been maintaining 100% amount for the outstanding overdue deposit amount to Rs.6.33 lakhs. But NHB pointed out that it has not maintained liquid assets in Govt Securities as required u/s 29B(1) of NHB Act and imposed a penalty of Rs.5694/- and the same was paid by the company. 11 The Company has repaid all the deposit accepted from public except to the extent of Rs.6.33 Lacs, which represents the deposits matured but withheld as Central Bureau of Investigation Anti-Corruption Branch, Shastri Bhavan, Chennai has given direction not to release till the disposal of the pending cases. 12 Managing Director of the company is on deputation from Indian Bank and is drawing remuneration from Indbank Merchant Banking Services Ltd as President of that company. Hence no remuneration is paid by this company.

14 Term Loan III from Indian Bank is secured by ICDs, which are considered doubtful and fully provided for in the accounts.

15 Trade payable classified under Long Term Liabilities represents amount due to Indian bank towards reimbursement of expenses and rent on corporate office premises.

16 Previous year figures have been regrouped wherever necessary to conform to current year's presentation.

17 The figures in this balance sheet and Profit and Loss Accounts have been rounded off to the nearest rupees.

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Mar 31, 2014

(In Rs.) Particulars AS on 31.03.2014 As on 31.03.2013

(A) ContIngent LIabIlItIes

Income tax department has raised a demand for the 432.00 432.00

assessment year 1999-00 against company had filed appeal before High Court Madras

Income tax department has raised a demand for the 19.02 19.02 assessment year 2005-06 against company had filed appeal before CIT

451.02 451.02

a) Housing loans excepting those loans classified as doubtful pursuant to the prudential norms of NHB are considered good and recoverable. The housing loans are secured by equitable mortgage of property and/or other securities to the extent of Rs.95,102,339/- and loans amounting to Rs.634,924/- are unsecured as on 31.03.2014. Classification of housing loans and provisions made for Non Performing assets are given below.

b) The company has stopped accepting and renewing of deposits and not making fresh loans. The company continues to receive financial support from its promoter, Indian Bank. In view of the above and in view of the general goodwill enjoyed by the company and continued customer base, the business strength continues to remain intact. Hence the accounts have been prepared on a going concern basis.

c) The only business activity of the company is housing finance and hence no segment reporting has been done.

d) The unabsorbed depreciation and carry forward losses eligible for set-off against future taxable income have not been considered as deferred tax asset on the ground of prudence.

e) There are no related party relationship/transactions requiring disclosure as per the relevant accounting standard

f) In respect of term loan taken from Indian Bank the company has given an undertaking to the Bank not to sell, dispose off, charge or otherwise alienate any of its fixed and liquid assets without the prior consent of the Bank so long as the Company''s liabilities to the Bank has not been fully repaid.

g) Investments & Term Deposits with banks includes the following

¦ Investments and deposits required to be maintained as liquid assets in terms of the Housing Finance Companies (NHB) Directions 1989 as per details given below:

Amount in Rs.

Term Deposits with Banks 633,100

¦ Amount received under SARFAESI action kept in no lien account as per the orders of DRAT, Chennai by way of short term deposits Rs.7,500,000/-.

h) The Income Tax Department has sent a demand notice for Rs.4.32 crores for the assessment year 1999-00 including interest. The demand is raised by considering the income on non-performing assets on accrual basis which, as per the NHB directives, could not be recognised as income. The Company has contested the demand and filed an appeal before the Hon''ble Madras High Court. In respect of the Assessment year 2005-06 Income Tax department has raised a demand of Rs.19.02 Lakhs for which the company has filed appeal before the commissioner of Income Tax and is hopeful of succeeding in the appeal and hence no provision for tax has been considered necessary.

i) The Income tax Department has informed the above demand has been adjusted against the refund receivable with the interest thereon, for various assessment years. The refund receivable as per books of the Company is Rs.2.85 crores.

j) Company''s obligation towards Gratuity Fund and details of actuarial valuation:

k) Managing Director of the company is on deputation from Indian Bank and is drawing remuneration from Indbank Merchant Banking Services Ltd as President of that company. Hence no remuneration is paid by this company.

l) Term Loan III from Indian Bank is secured by ICDs, which are considered doubtful and fully provided for in the accounts.

m) Previous year figures have been regrouped wherever necessary to conform to current year''s presentation.

n) The figures in this balance sheet and Profit and Loss Accounts have been rounded off to the nearest rupees.

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Mar 31, 2013

A) The company has stopped accepting and renewing of deposits and not making fresh loans. The company continues to receive financial support from its promoter, Indian Bank. In view of the above and in view of the general goodwill enjoyed by the company and continued customer base, the business strength continues to remain intact. Hence the accounts have been prepared on a going concern basis.

b) The only business activity of the company is housing finance and hence no segment reporting has been done.

c) The unabsorbed depreciation and carry forward losses eligible for set-off against future taxable income have not been considered as deferred tax asset on the ground of prudence.

d) There are no related party relationship/transactions requiring disclosure as per the relevant accounting standard

e) In respect of term loan taken from Indian Bank the company has given an undertaking to the Bank not to sell, dispose off, charge or otherwise alienate any of its fixed and liquid assets without the prior consent of the Bank so long as the Company''s liabilities to the Bank has not been fully repaid.

Amount received under SARFAESI action kept in no lien account as per the orders of DRAT, Chennai by way of short term deposits Rs.7,750,000/-

f) The Income Tax Department has sent a demand notice for Rs.4.32 crores for the assessment year 1999-00 including interest. The demand is raised by considering the income on non- performing assets on accrual basis which, as per the NHB directives, could not be recognised as income. The Company has contested the demand and filed an appeal before the Humble Madras High Court. In respect of the Assessment year 2005-06 Income Tax department has raised a demand of Rs.19.02 Lakhs for which the company has filed appeal before the commissioner of Income Tax and is hopeful of succeeding in the appeal and hence no provision for tax has been considered necessary.

g) The Income tax Department has informed the above demand has been adjusted against the refund receivable with the interest thereon, for various assessment years. The refund receivable as per books of the Company is Rs.2.85 crores.

h) Managing Director of the company is on deputation from Indian Bank and is drawing remuneration from Ind bank Merchant Banking Services Ltd as President of that company. Hence no remuneration is paid by this company.

i) 12.40% Govt of India 2013 Securities are held in Indian Bank in their SGL constituent account on behalf of the Company and as certified by the Bank.

j) Term Loan III from Indian Bank is secured by ICDs, which are considered doubtful and fully provided for in the accounts.

k) Balance confirmation has not been received in respect of debit and credit entries outstanding in Sundry Deposit/ Sundry Receivable account.

l) Previous year figures have been regrouped wherever necessary to conform to current year''s presentation.

m) The figures in this balance sheet and Profit and Loss Accounts have been rounded off to the nearest rupees.

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Mar 31, 2012

Housing loans excepting those loans classified as doubtful pursuant to the prudential norms of NHB are considered good and recoverable. The housing loans are secured by equitable mortgage of property and/or other securities to the extent of Rs. 107,098,706/-. Classification of housing loans and provisions made for Non Performing assets are given below.

a) The company has stopped accepting and renewing of deposits and not making fresh loans. The company continues to receive financial support from its promoter, Indian Bank. In view of the above and in view of the general goodwill enjoyed by the company and continued customer base, the business strength continues to remain intact. Hence the accounts have been prepared on a going concern basis.

b) The only business activity of the company is housing finance and hence no segment reporting has been done.

c) The unabsorbed depreciation and carry forward losses eligible for set-off against future taxable income have not been considered as deferred tax asset on the ground of prudence.

d) There are no related party relationship/transactions requiring disclosure as per the relevant accounting standard .

e) In respect of term loan taken from Indian Bank the company has given an undertaking to the Bank not to sell, dispose off, charge or otherwise alienate any of its fixed and liquid assets without the prior consent of the Bank so long as the Company's liabilities to the Bank has not been fully repaid.

f) The Income Tax Department has sent a demand notice for Rs.4.32 crores for the assessment year 1999-00 including interest. The demand is raised by considering the income on non-performing assets on accrual basis which, as per the NHB directives, could not be recognized as income. The Company has contested the demand and filed an appeal before the Hon'ble Madras High Court. In respect of the Assessment year 2005-06 Income Tax department has raised a demand of Rs.19.02 Lakhs for which the company has filed appeal before the commissioner of Income Tax and is hopeful of succeeding in the appeal and hence no provision for tax has been considered necessary.

g) The Income tax Department has informed that the above demand has been adjusted against the refund receivable with the interest thereon, for various assessment years. The refund receivable as per books of the Company is Rs.2.85 crores.

h) Managing Director of the company is on deputation from Indian Bank and is drawing remuneration from Indbank Merchant Banking Services Ltd as President of that company. Hence no remuneration is paid by this company. '

i) 12.40% Govt of India 2013 Securities are held in Indian Bank in their SGL constituent account on behalf of the Company and as certified by the Bank, m) Term Loan III from Indian Bank is secured by ICDs, which are considered doubtful and fully provided for in the accounts.

j) Previous year figures have been regrouped wherever necessary to conform to current year's presentation.

k) The figures in this balance sheet and Profit and Loss Accounts have been rounded off to the nearest rupee.

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Mar 31, 2010

A) The company has stopped accepting and renewing of deposits and not making fresh loans. The company continues to receive financial support from its promoter, Indian Bank. In view of the above and in view of the general goodwill enjoyed by the company and continued customer base, the business strength continues to remain intact. Hence the accounts have been prepared on a going concern basis.

b) The only business activity of the company is housing finance and hence no segment reporting has been done.

c) The unabsorbed depreciation and carry forward losses eligible for set-off against future taxable income have not been considered as deferred tax asset on the ground of prudence.

d) There are no related party relationship/transactions requiring disclosure as per the relevant accounting standard

e) In respect of term loan taken from Indian Bank the company has given an undertaking to the Bank not to sell, dispose off, charge or otherwise alienate any of its fixed and liquid assets without the prior consent of the Bank so long as the Companys liabilities to the Bank has not been fully repaid.

f) The Income Tax Department has sent a demand notice for Rs.4.32 crores for the assessment year 1999-00 including interest. The demand is raised by considering the income on non-performing assets on accrual basis which, as per the NHB directives, could not be recognised as income. The Company has contested the demand and filed an appeal before the Honble Madras High Court. In resspe3ct of the Assessment year 2005-06 Income Tax department has raised a demand of Rs.19.02 Lakhs for which the company has filed appeal before the commissioner of Income Tax and is hopeful of succeeding in the appeal and hence no provision for tax has been considered necessary.

g) The Income tax Department has informed the above demand has been adjusted against the refund receivable with the interest thereon, for various assessment years. The refund receivable as per books of the Company is Rs.2.85 crores.

h) Managing Director of the company is on deputation from Indian Bank and is drawing remuneration from Indbank Merchant Banking Services Ltd as President of that company. Hence no remuneration is paid by this company.

i) 12.40% Govt of India 2013 Securities are held in Indian Bank in their SGL constituent account on behalf of the Company and as certified by the Bank.

j) Term Loan III from Indian Bank is secured by ICDs, which are considered doubtful and fully provided for in the accounts.

k) Balance confirmation has not been received in respect of debit and credit entries outstanding Sundry Deposit/ Sundry Receivable account.

l) Previous year figures have been regrouped wherever necessary to conform to current years presentation.

m) The figures in this balance sheet and Profit and Loss Accounts have been rounded off to the nearest rupee.